State budget and school funding formula bill debuts in House
02/17/2015

 

Hoosiers had their first glimpse of how House Republicans would craft the state’s biennial budget and school funding formula. Chairman Tim Brown (R-Crawfordsville) presented HB 1001 amending the governor’s prior version.

 

Here is the entire school funding printout. Check your own district (listed by school district and are county-based).

 

Positive takeaways:

• The governor’s K-12 funding called for a statewide average of 2 percent in 2016 and 1 percent in 2017. The Ways and Means version calls for a statewide average increase of 2.3 percent in 2016 and 2.3 percent in 2017. 
• The “per-pupil foundation” is increased from $4,583 to $4,962 in 2016 and increased again $5,105 in 2017 (an 11 percent growth over the biennium). Remember the complexity index calculation changes factor heavily into this increase, see below.
• Transition to foundation calculations will be completed in FY 2016, ahead of originally scheduled.
• Keeps the $25 million cushion voucher growth from causing the state to reach the calendar year cap.
• For the first time in several years, special education increased in a few categories: severe goes from $8,350 per-pupil to $8,800 per-pupil, and moderate goes from $2,265 per-pupil to $2,300 per-pupil.
• Academic honors funding overall increased by nearly 20 percent in 2016 and another 4.7 percent in 2017 with a new two-tier formula that rewards (to a greater degree) academic honors diplomas to students.
• Full-day kindergarten becomes part of the formula (half count for half day and full count for a full day).
• INSPIRE funding has been restored.
• Modest COLA’s are contemplated.

 

Remaining challenges:

• The complexity index was revamped and is based on free lunch students. The statewide loss in complexity index funding is approximately $300 million, causing some profound losing districts, typically in areas with a multitude of academic challenges.
• No increase in textbook funding assistance, although the percentage of families qualifying for assistance has increased by 25 percent since the last time the General Assembly visited this issue.
• English Learner funding saw no increase.
• Performance pay amounts saw no increase, remaining at $30 million per year, but yet adds several classes of eligible school employees to the mix. Therefore, diminishing the potential of earning bonuses.  Even worse, the provision prohibits these monies from being bargainable, despite the fact IEERB previously agreed that these were based upon salary and wage issues. Administrators are now eligible for funds and have input on how they are allocated.
• There are no professional development funds available. 
• Career and technical funding formula is revised and analysis of changes are underway.
• Appears to give all charter schools $6,600 per student.
• Provides an annual $20 million charter school grant that can apply (up to $1,500 per student) outside of the formula and must be used for capital, technology and transportation expenses.  This differs from the governor’s proposal which would have provided a $1,500 add-on subsidy based upon every charter school. The costs of the governor’s proposal was about $41 million each year.  So, Ways and Means cut that proposal in half, but still constitutes $40 million worth of new funding for charter schools.
• Like the governor’s proposal, the Ways and Means version:
  • Takes the “cap” on funding off of K-8 vouchers.
  • Adds $2 million each year on Freedom to Teach.
  • Adds $5 million each year to provide takeover school assistance.
  • Increases the private school tuition tax credit from $7.5 million to $12.5 million with an automatic escalator each year. In effect, the state is telling wealthy taxpayers to give money to organizations that give out private school “scholarships”. Your tax liability to the state will be reduced or eliminated, therefore creating fewer dollars to fund programs that benefit all Hoosiers.

Much of the discussion today centered on IPS. IPS stands to lose approximately $18 million over the biennium and more than $200 per student. There are other districts that stand to lose significant funding annually over the biennium.

 

ISTA testified that the increased foundation deserves positive notice and are significant within recent history. However, the cost to some of the school districts in need is evident and additional work needs to be done to smooth out these funding cliffs. ISTA also testified that new funding could be used to help in terms of Freedom to Teach, takeover assistance, no increases to private school tuition tax credit, etc.